Business
Lucid Diagnostics Completes Convertible Debt Refinancing to Strengthen Balance Sheet and Extend Cash Runway Past Key Near-Term Milestones
New convertible debt financing with existing long-term equity shareholders yields ~$18M in net cash proceeds after paying off existing convertible debt NEW
About this update from Lucid Diagnostics Inc.
[{"type":"text","content":"New convertible debt financing with existing long-term equity shareholders yields ~$18M in net cash proceeds after paying off existing convertible debt\nNEW YORK, Dec. 3, 2024 /PRNewswire/ -- Lucid Diagnostics Inc. (Nasdaq: LUCD) (\"Lucid\" or the \"Company\"), a commercial-stage, cancer prevention medical diagnostics company and subsidiary of PAVmed Inc. (Nasdaq: PAVM), today announced the successful completion of a convertible debt refinancing transaction that strengthens its balance sheet and extends its cash runway past near-term reimbursement milestones. Lucid issued five-year convertible notes to long-term equity shareholders in an aggregate principal amount of $21.95 million. A total of $3.61 million of the proceeds were used to retire the Company's existing convertible debt, yielding $18.34 million in incremental cash to the Company.\n\n \n \n \n \n \n \n\n \n\"We believe that this debt refinancing, which is a strong vote of confidence in Lucid's technology and commercial potential by long-term Lucid shareholders, enhances shareholder value in two critical ways,\" said Lishan Aklog, M.D., Chairman and Chief Executive Officer of Lucid. \"The net proceeds increase our pro forma cash as of the end of the third quarter to approximately $33 million, providing us with sufficient cash to get us past key reimbursement milestones which we have previously outlined. This new convertible debt is held by long-term investors and has terms which are designed to keep shares out of the market.\"\nFor key terms and conditions, please see the Company's Current Report filed on Form 8-K on November 12, 2024.\nAbout Lucid DiagnosticsLucid Diagnostics Inc. is a commercial-stage, cancer prevention medical diagnostics company, and subsidiary of PAVmed Inc. (Nasdaq: PAVM). Lucid is focused on the millions of patients with gastroesophageal reflux disease (GERD), also known as chronic heartburn, who are at risk of developing esophageal precancer and cancer. Lucid's EsoGuard® Esophageal DNA Test, performed on samples collected in a brief, noninvasive office procedure with its EsoCheck® Esophageal Cell Collection Device, represent the first and only commercially available tools designed with the goal of preventing cancer and cancer deaths through widespread, early detection of esophageal precancer in at-risk patients.\nFor more information, please vi...